New law puts pressure on banks to keep branches open

The Campaign for Community Banking Services has welcomed new legislation that will put more pressure on banks to continue to provide a presence in communities where they are the last branch in town.

The Financial Services Bill, due to receive Royal Assent this week, will impose a duty on the new City regulator to consider public access issues as part of its remit.

The ‘ease of access’ amendment means the Financial Conduct Authority will be required to monitor the impact of branch closures on the availability of financial services within communities, and act if it believes restricted access is harming consumers.

Pressure on banks: Financial Services Bill, due to receive Royal Assent this week, will impose a duty on the new City regulator to consider public access issues

Derek French, head of the CCBS, says the legislation is a ‘step in the right direction’.

More than 900 communities have access to only one High Street branch and there are fears banks are about to embark on a new round of closures, further restricting banking choice.

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‘The amendment is a platform from which to build,’ says French. ‘Consumers and small firms need a banking choice on the High Street.’

Adam Phillips, chairman of the Financial Services Consumer Panel, welcomes the Bill’s acknowledgement of the importance of access: ‘It’s vital all people have easy access to financial services, be it to banking or insurance.’